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Luxury residential markets across Asia Pacific see limited price increases between July and September 

Jones Lang LaSalle releases Q3 2013 Asia Pacific Residential Index

SINGAPORE, 05 December 2013 - The third quarter of 2013 saw limited price growth in monitored luxury residential markets in Asia Pacific, according to the latest Jones Lang LaSalle Residential Index.  While four of the nine featured markets saw minimal increases in capital values during the quarter, Hong Kong and Singapore reported quarterly declines, and the remainder recorded no change. On a yearly basis, growth remained strong for both Beijing and Jakarta, with both cities experiencing double digit growth; Hong Kong and Singapore registered price declines over the past 12 months and the rest of the markets saw growth that ranged from 2.4-6.0 percent.

After 10 quarters of strong growth, prices in Jakarta remained flat, leaving room for Beijing (1.6 percent) and Shanghai (1.5 percent) to lead the region in quarterly price increases, as a result of fewer projects coming to market. Healthy sales activity coupled with strong local demand saw Manila outperform its Southeast Asian peers, with quarterly growth of 0.8% in Q3. However, Jakarta continues to outperform all monitored markets on an annual basis with 26.2 percent growth, followed by Beijing at 14.1 percent y-o-y. Of the nine monitored markets, Singapore saw the biggest quarterly (-0.4 percent) and annual (-2.5 percent) declines as tightening regulations on bank credit continued to affect investor sentiment. In Hong Kong, luxury residential prices also saw a marginal quarterly decline of 0.3 percent as sales volumes remain low due to buyer caution.

Commenting on the Hong Kong high end residential market, Joseph Tsang, Managing Director for Jones Lang LaSalle in Hong Kong said: “Buying demand for luxury residential properties remains weak, with monthly transaction volumes in Q3 falling to levels last seen during the Global Financial Crisis. Although prices have generally been holding up in the secondary market, we are starting to see signs of discounting in the primary market and expect prices to remain under pressure over the last quarter of the year and into 2014.” 

Dr Jane Murray, Head of Research, Asia Pacific, Jones Lang LaSalle said: “Despite limited price increases across the region’s luxury residential market in Q3, we have still seen moderate to strong yearly growth in most markets. Looking forward to the remainder of the year and into 2014, we expect sales activity in Greater China and Singapore to stay at similar levels as investor sentiment continues to be affected by government tightening measures that are likely to remain in place for the next 12 months. Over the next year, emerging southeast Asian markets should continue to experience moderate price growth while we expect to see the strongest increases in Beijing and Shanghai as a result of resilient local demand.”

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Notes to editors

  1. The Jones Lang LaSalle Residential Index tracks the capital value performance of high-end residential stock across nine featured markets in Asia.
  2. Capital values are on a net lettable area basis 
  3. Luxury residential properties include apartments, condominiums, detached and semi-detached housing that are located in traditional prime areas

Residential Index image.jpg

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.7 billion of real estate assets under management.

Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 26, 700 employees operating in 80 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in three Asia Pacific countries at the International Property Awards Asia Pacific 2013, and won nine Asia Pacific awards in the Euromoney Real Estate Awards 2013. 

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